Page 217 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Accounting for Companies – II

notes Furniture 1,050 2% on ` 26,887.25 537.75 2,982.75
Stock 29,600 Cost of Liquidations 1,015
Surplus from securities (4,900 – 4,000) 900 Debentures 44,000
+ 6 Months’ Interest 1,320 45,320
Preferential Creditors 5,295
Unsecured Creditors 26887.25

81,500 81,500
Working Note:
(1) Payment for Unsecured Creditors- `
Amount available 81,500
Less: Liquidator’s Remuneration on Assets
Realised 2,445
Cost of Liquidation 1,015
Debentures + Accrued Interest 45,320
Preferential Creditors 5,295 54,075
Amount for Unsecured Creditors and 27,425
Liquidator’s remuneration thereon

27,425 ×2
Less Liquidator’s remuneration = 537.75
102
Amount for Unsecured Creditors 26,887.25

44,000 ×6 6
(2) Interest on Debentures × = 1,320
100 12
Illustration 5 (Arrear of Dividend of Preference Shares and Interest on Debentures)
On 31 March, 2010, the date of liquidation of Ram Mohan Company Limited, its Balance Sheet
st
was as under. Prepare the Final Account of the Liquidator.
liabilities ` assets `
Capital: Buildings 4,00,000
7% Preference Shares 3,00,000 Machinery 1,60,000
6,000 Equity Shares of ` 10 each ` 8 paid up 48,000 Stock 4,00,000
3,000 Equity Shares of ` 10 each ` 7 paid up 21,000 Debtors 6,40,000
6% Debentures of ` 100 each 12,00,000 Cash 51,000
Outstanding Interest on 6% Debentures 72,000
Creditors 8,000
B/ P 2,000
16,51,000 16,51,000
Realised on Assets: Buildings ` 3,50,000, Machinery ` 2,00,000, Debtors ` 6,00,000, Stock
` 4,61,000, Liquidator’s Expenses ` 2,000. Remuneration of Liquidator: 1 1 2 % on realisation

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